Reunify’s Tech-Know Tuesday: The Customer is King When it Comes to Retention
In any business venture, it is pivotal to not only build a client base, nurture and grow it but to also retain and maintain it. One of the biggest mistakes businesses, especially fitness clubs, make is that in their efforts to grow and expand they forget the ultimate rule of maintaining their original customer base. What they don’t realize is that it’s 4 to 10 times more costly to acquire new customers, than it is to retain even 1–5 customers one month longer; which will allow them to break even almost every time. It is this original base that will not only allow a foundation for growth, but will also become your advocate in helping spread the word to potential new customers.
According to Harris Sophocleous MS CSCS some of the biggest hurdles gym owners face, including retention is as follows:
“In my opinion, I think it has to do with getting new members and maintaining them. With so much competition out there, they need to keep coming up with new ideas and training programs that will make their members want to stay there. Also pricing has to be right. Their overhead costs and other expenses can be an issue as well, especially in today’s economy.”
The solution to this problem is making the member feel that you care about their experience by effectively engaging with them, whether they are a new prospect or current member. According to Damon Richards, “Your customer doesn’t care how much you know until they know how much you care.” So the only way to truly connect with and retain a member is to personalize your engagement strategy to show you pay attention, and make sure you’re engaging with them in a genuine manner that creates a great customer experience for them. To do so gym owners should keep the following 3 questions in mind when creating a strategy:
- Who do you engage with?
- When is the right time to engage?
- How do you make the engagement relevant?
Once these questions have been answered a strategy can be formulated that will allow owners to rediscover their customers, reengage with the vital ones and ultimately redefine their relationship with them and future prospects. This method will allow you to forecast and prepare ahead of time so that you are effectively and efficiently meeting member needs before they come to you with a problem. In order to obtain the data necessary for these engagements an app like Reunify’s PULSE is needed, that will collaborate with your CRM and other important data points to give you the anayltics to create your personalized strategy.
Reunify identifies your at-risk and high value customers, providing you with the right data to re-engage genuinely with the most vital ones before they leave. With the right relationships you can boost retention, improve customer satisfaction and increase revenue.
For a demo or to learn more about the PULSE app please visit Reunify.com.